Coupang Q1 FY26 earnings call CPNG

January marked the low point in Product Commerce revenue growth, with each subsequent month improving on a year-over-year basis and the pace of improvement strengthening through February and March. Management attributes the recovery to the same drivers that built the business over 10+ years of Rocket Delivery — selection, price and service. Constant-currency growth adjusted for holiday timing bottomed in January and accelerated sequentially in February and March. The most recent trend, not the trailing metrics, is described as the meaningful signal.

The vast majority of WOW members never left and continued to compound spend at double-digit rates throughout the period. Of those who paused, the majority have returned and resumed prior spending levels rather than splitting share of wallet with alternatives. Through end of April, Coupang closed nearly 80% of the post-incident WOW membership decline via returning members and strong new sign-ups, with new sign-ups and churn back to historical stable levels. Management declined to give a specific full-recovery date, emphasizing trajectory over timing.

A meaningful portion of the cost base is fixed and built in advance — fulfillment centers, logistics network, supply chain commitments and headcount — all sized against a projected demand curve set quarters or years out. When the incident disrupted that curve, actual demand fell short of what those commitments were sized for, leaving underutilized capacity that shows directly in gross margin and adjusted EBITDA. Management is choosing to absorb the temporary underutilization rather than dismantle capacity it expects to need again, likening the dynamic to the post-COVID period.

Growth is driven by two streams: existing customers compounding their spend and new customers joining and building spend over time^⏳. When an external event interrupts the cycle, paused customers stop adding to the base and new customers join below the usual pace — and critically, the months of compounding lost during the affected period cannot be recovered. This makes year-over-year comparisons asymmetric (this year missing compounding months, last year with all 12 intact) until the affected period laps, causing reported YoY growth to lag the underlying customer recovery and to run behind the demand curve the fixed cost base was sized for.

Developing Offerings revenue grew 28% reported (25% cc) to $1.3B, driven by hyper-growth in Taiwan plus continued high growth in Eats and Rocket Now in Japan; gross profit of $123M was down 25% YoY on continued investment. In Taiwan, the owned next-day last-mile delivery network now covers the vast majority of volume, with cohort retention reminiscent of the early years of Product Commerce in Korea. FY focus is deliberate long-term foundation-building — network design, last-mile build-out, supply chain and selection expansion — rather than near-term profitability. Eats recovery is following a path similar to Product Commerce.

Coupang repurchased 20.4M Class A shares for $391M in the quarter, and the Board approved an additional $1B for the stock repurchase program as part of a broader capital-allocation strategy. Management framed capital allocation across Developing Offerings as disciplined — starting with small investments, testing rigorously, and deploying more capital only into opportunities that can generate lasting customer WOW and durable cash flows. An analyst noted the buyback cadence appears to be accelerating; management did not commit to a specific forward pace.

Management acknowledged a recent designation in Korea (media reports describe founder Bom Kim being designated in connection with a chaebol/large-business-group framework) and said it is carefully reviewing the matter. It reiterated commitment to complying with all regulatory requirements across jurisdictions and to engaging with regulators, but declined to elaborate on governance or shareholder implications at this time.